factual

Does the Advanced Mobile Iv And Amiv agreement allow for payments for referrals?

Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDD

Answer from 2023 FDD Document

We or our affiliates may obtain money, goods, services, or other benefits from persons and entities with whom you do business, on account of that business with you. These may include rebates, refunds, commissions, cooperative payments, or discounts. We will accumulate them, annually account to the Advanced Mobile IV franchise system for them and either add them to the Marketing Fund, use them for programs that benefit all franchisees such as conventions and administration of purchasing programs, use them to provide supplemental training and promotional services to Advanced Mobile IV franchisees, or return them at reasonable times to all Advanced Mobile IV franchisees pro rata, based upon the volume of related business.

Source: Item 23 — RECEIPTS (FDD pages 54–202)

What This Means (2023 FDD)

Based on the 2023 Franchise Disclosure Document, the Advanced Mobile Iv And Amiv franchise agreement does not explicitly address whether franchisees can receive payments for referrals. However, the FDD does state that Advanced Mobile IV, LLC or its affiliates, may obtain money, goods, services, or other benefits from persons and entities with whom franchisees do business. These benefits may include rebates, refunds, commissions, cooperative payments, or discounts.

The franchisor has the right to accumulate these benefits and annually account to the Advanced Mobile IV franchise system for them. The franchisor can then choose to add these benefits to the Marketing Fund, use them for programs that benefit all franchisees (such as conventions and administration of purchasing programs), use them to provide supplemental training and promotional services to franchisees, or return them to all franchisees pro rata, based upon the volume of related business.

This means that while franchisees may not directly receive referral payments, they could indirectly benefit from any commissions or discounts the franchisor receives due to their business activities. These benefits could come in the form of increased marketing funds, better training, or a direct return of funds based on their business volume.

A prospective Advanced Mobile Iv And Amiv franchisee should seek clarification from the franchisor regarding the specifics of how these benefits are distributed and whether there are any restrictions on franchisees receiving direct referral payments.

Disclaimer: This information is extracted from the 2023 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.